Lummis Slams Biden's Proposed Bitcoin Mining Tax as 'Powerless' to Combat Emissions

Pro-crypto Senator Cynthia Lummis has come out swinging against President Biden's proposed 30% excise tax on Bitcoin mining energy consumption. According to Lummis, the White House severely underestimates the green credentials of the industry.

Lummis released a report titled 'Powering Down Progress: Why A Bitcoin Mining Tax Hurts America' on July 23, which highlights the benefits that Bitcoin mining brings to the US energy grid. The senator argues that the tax would harm American interests and claims it would backfire environmentally by disincentivizing miners from seeking sustainable energy sources.

Lummis points to several examples of innovative energy use in mining, including methane sequestration from landfills for BTC mining and the use of volcanic energy to mine 474 Bitcoin in El Salvador. She also mentions a Marathon Digital facility in Finland that heats an entire community of 11,000 people.

The senator warns of potential consequences using the Laffer Curve, arguing that higher taxes will drive miners out of the US, reducing tax revenues. She cites China's 2021 mining ban as a cautionary tale, noting that before the ban, Chinese miners controlled a majority of the Bitcoin network's hashrate.